Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1887-11-12
LAKE COUNTY BONDS.
The Demand for California Securities for
Permanent Investment.

permanent Investment.
Yesterday a reporter was looking over
the warrant book in the Controllers Office
when he discovered one that read as fol-
lows: No 5779. In favor of w. E. Gerber,
S55,l69 OF for the purchase of Lake county
bonds" 1t being dull day for items the
scribbler wandered to the other end of the
building, and in the State Treasurer's Office
asked to see one OF the Lake county bonds.
Certainly, you can see one or all of them,
if you like replied Deputy State Treas
urer Danielwitz, as he laid upon the desk
AIS bonds of $100 each and remarked,
"There they are-S47, 500 in Lake county
bonds" From the fact that they are worth
500 each, and beautifully printed promises
to pay, the reporter picked one up and
read:
BOND OF THE COUNTY OF LAKE.
The County of Lake, in the State of Cali
fornia, for value received, promises to pay
Alfred G.. Plat, or order, at the Office of the
Treasurer of said county, in the town of Lake
port on the 7th day of October, 1907, or at any
| tine before that date, at the pleasure of the
county, the sum of one hundred dollars, gold
coin of the United States. with interest at the
rate Of five per cent. per annum, payable at the
Office of said Treasurer. semi-annually, on the
SeNtutH Udg vi <ApIll anu OclODer III eacn year,
on presentation and surrender of the interest
coupon hereto attached.
This bond is issued by the Board of Super
visers in conformity with the resolutions of said
Board, dated the 18th day of September. 1887
and under and in pursuance of the authority
conferred on this Board by the provisions of an
Act of the Legislature of the State of California
entitled IAN Act authorizing the Board of Su-
pervisors of any county, having a bonded debt
to refund such debt at a lower rate of interest"
approved March Is. 1885, and of an Act entitled
txtf
and township government" approved March a.
1858; and all the provisions prescribed by law
for the issuance of this bond have been COM
piled with.
The bonds are signed by Lewis Hender-
son, Chairman of the Board of Supervisors
of Lake county, and attested by W. A
Thompson, County Auditor. To it are at
tached forty coupons calling for 81 so each,
the semi annual interest on 500.
/ t'Who purchased these bonds and what
were they purchased for ?" queried the re-
porter.
! a',They were purchased by the order of
the State Board of Examiners for the
school fund, as you will notice by the
stamp in the upper right hand corner" re-
piled Mr.. Danielwitz.
:" Well" said the reporter III see there
are but 478 of these bonds. Each bond
calls for 500, making total value of $47,-
ivy. ASt 4 oCS tl1c WdEIdul tQ8L you
have paid $50, 1S9 OF, or 81, $3.50 OF more for
the bonds than their face calls for. Am
.nght2p 49,
+ ttYes; sir
THE annual interest on those bonds is
S., 800, is it not ?'i
That's correct"
Well, it seems that you have paid
81, 3S9 OF premium, if you like to call
it so, for bonds issued only last month
more than three years interest. Am l
right?"
Yes, sir"
well, now, here is something that l
want explained to me. Cannot the Board
of Supervisors call in those bonds at any
time by paying their facet"
" Yes, sir; they can redeem them to-
morrow if they can raise the funds to do
it with
Well" said the reporter, L find that
the State will have to hold these bonds for
over three years before they will be what
we call even on Them or realize any in
terest upon them and if the Board of Su-
peryisors should call them in before that
time, as they have right to do, the State
would suffer quite a loss. So large, so ex-
traor binary a premium on newly issued
county bond shows the faith the State has
in the stability of the county governments,
and also indicates that good securities are
scarce, or permanent investments would
not be made by the State under these con-
ditions"